SagePoint Software & Services M&A Review for Q1 2011 An Analysis of M&A Activity and Valuation Metrics in the Internet, Communications and IT Infrastructure Software & Services Market Segments For more information contact David Michaels at (858) 926-5950 or
[email protected] Table of Contents Section Page SagePoint’s Viewpoint – Key Takeaways 3-4 Internet, Communications & IT Infrastructure (“ICIT”) Universe • M&A Dollar Volume 5 • M&A Transaction Volume 6 • Median M&A Revenue Multiples 7 Internet, Communications & IT Infrastructure Software & Services • M&A Dollar Volume 8 • M&A Transaction Volume 9 • Transaction Volume by Deal Size 10-11 • Median M&A Revenue Multiples 12-13 • Most Active Buyers 14-15 • M&A Transaction Spotlight 16-25 • Appendix: Detailed M&A Data 26-37 Introduction to SagePoint 38-45 Internet, Communications & IT Infrastructure Software & Services M&A – Q1 2011 2 SagePoint’s Viewpoint - Key Takeaways • M&A dollar volume across SagePoint ‘s entire Internet, Communications & IT Infrastructure (“ICIT”) increased 61% from Q4 to $86.8B, reaching the highest dollar volume since Q2’08 − The increase was driven by the $39B telco megamerger of AT&T and T-Mobile • M&A transaction volume across SagePoint’s ICIT universe increased 10% over the prior quarter and nearly 30% compared to Q1’10 to a four year high of nearly 500 deals • Software & Services M&A transaction volume increased 18.6% versus Q4’10 to its highest level since the beginning of 2007 • M&A dollar volume across SagePoint‘s Software & Services Universe